Ethena Labs announced Thursday that the Ethena protocol has generated over $500 million in cumulative revenue. Growth in revenue and circulating supply of the synthetic stablecoin USDe has accelerated since July, as synthetic stablecoins gain market share.
In a post on X, Ethena said that in the past week alone, the protocol’s revenue reached $13.4 million and the USDe supply hit an all-time high of $11.7 billion.
“Ethena’s revenue was driven by strong USDe inflows and favorable market conditions, which increased the profitability of our delta-neutral hedge,” said Ethena Labs. “This momentum reflects the growing demand and confidence in USDe as a store of value.”
According to analytics platform DefiLlama, USDe now has the third-largest market cap among all stablecoins and tops the stablecoin pool. Over the past month, USDe's market cap has increased by 86.6%.
In addition to USDe, many other synthetic stablecoins also grew strongly. Sky Dollar (USDS) – the stablecoin that runs the Sky ecosystem, an upgraded version of DAI – recorded a 14% increase in market capitalization. Falcon USD (USDf), a synthetic stablecoin of Falcon Finance, increased its market capitalization by 89.4%.
Synthetic stablecoins have advantages such as low transaction costs due to not being collateralized by physical assets, but also carry the risk of instability and loss of anchoring, causing great losses to investors.
Stablecoin market up 4% in August 2025
According to DefiLlama, the stablecoin market capitalization increased by 4% in August, from $266.6 billion at the end of July to $277.8 billion on Thursday. The increase comes amid increasing clarity on the US regulatory framework, with President Donald Trump signing the GENIUS Act into law on July 18.
At the Wyoming Blockchain Symposium 2025, US Federal Reserve Governor Christopher Waller said the GENIUS Act would help stablecoins reach their full potential and expand the role of the US dollar globally.
China may make a counter-move by considering allowing the issuance of stablecoins pegged to the yuan, marking a significant policy shift.